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in Rolling Hills, CA
Rolling Hills sits among Los Angeles County's most exclusive gated communities, where estate properties dominate the landscape. Both FHA and VA loans offer government backing, but they serve different borrowers with distinct advantages.
FHA loans work for any qualified buyer with lower credit scores or limited savings. VA loans exclusively serve military borrowers but deliver stronger benefits including no down payment and no mortgage insurance.
FHA loans require just 3.5% down with credit scores as low as 580. You'll pay an upfront mortgage insurance premium of 1.75% plus annual premiums between 0.55% and 1.05% for the life of most loans.
These loans cap at $1,149,825 in Los Angeles County for 2024. That limit can be restrictive in Rolling Hills where luxury estates often exceed this threshold considerably.
VA loans require zero down payment for eligible veterans and active-duty service members. There's no monthly mortgage insurance, just a one-time funding fee ranging from 1.4% to 3.6% depending on service type and down payment.
The VA loan limit matches FHA at $1,149,825 in Los Angeles County, but qualified borrowers can exceed this with a partial down payment. No minimum credit score exists, though most lenders want 620 or higher.
The biggest split is eligibility: anyone can use FHA while VA demands military service credentials. Monthly costs differ dramatically since VA eliminates mortgage insurance entirely, saving hundreds per month.
Down payment flexibility heavily favors VA borrowers who can finance 100% with strong credit. FHA always requires 3.5% minimum, and both programs charge upfront fees that can be rolled into the loan amount.
If you qualify for VA benefits, that loan almost always beats FHA due to zero down and no monthly insurance. The only FHA advantage is slightly more lenient credit standards at some lenders.
Non-military buyers should compare FHA against conventional loans before committing. In Rolling Hills' higher price ranges, you'll likely need conventional or jumbo financing anyway since both government programs hit the same loan limit.
Yes, but only up to $1,149,825 without a down payment. Above that limit, you'll need to put at least 25% down on the excess amount.
VA loans cost less monthly because they eliminate mortgage insurance. On a $1 million loan, that saves roughly $350-450 per month compared to FHA.
Rates vary by borrower profile and market conditions, but VA typically offers rates 0.25% to 0.5% lower than FHA. Both beat conventional rates for most borrowers.
Yes, veterans can refinance from any loan type into a VA loan. This often makes sense to eliminate FHA mortgage insurance permanently.
Timeline depends on your lender, not the loan type. Both FHA and VA close in 30-45 days with organized documentation and responsive appraisers.